Consumers want more communications and usage-based policies from insurance firms

Consumers want more frequent and relevant communications from insurance firms, as well as greater access to usage-based insurance policies and add-on products, according to new research by software company Duck Creek Technologies, published today (21 February 2022).

Its Global Consumer Insurance Insights Survey, which polled 2,000 global consumers, found that nearly 60% of respondents have a strong interest in usage-based insurance policies, for example.

Mike Jackowski, chief executive of Duck Creek Technologies, described this feedback as “a clear strategic opportunity” for insurance firms to tap into.

In addition, the research flagged that carriers should accelerate work around new products, perhaps focusing outside the remits of traditional motor, home and life insurances, to take advantage of niche or regional product gaps.

Greater communications

The survey also found that insurance customers worldwide want more regular and relevant communications from their insurers, especially when it comes to dealing with claims - 95% of respondents, for example, want to hear more about the status of their claim from their insurer.

Furthermore, a third of respondents stated that they do not receive communications from their insurer on an annual basis, if there is no claim against their policy. Around 14% do not get a renewal reminder from their carrier either.

The research further flagged an increased consumer appetite for digital communication channels and online insurance services.

Jackowski continued: “This is an exciting time for our industry, where the most successful insurance businesses are undoubtedly those [that] act on their ability to listen to consumers, react quickly and consistently provide high quality, relevant products and services to their customers.

“This pioneering survey highlights some surprising home truths about communication and engagement with consumers that many carriers may assume they have addressed.

“At the same time, the strong consumer interest in insurance innovations, such as add-on products and usage-based insurance, with nearly 60% of consumers expressing an interest in the latter, is a clear strategic opportunity.

“Now, carriers have at their fingertips the technology and tools they need to grow their digital presence, enhance their distribution channels, maximise their data and create truly compelling, persona-based interactions that anticipate and exceed consumer preferences and expectations.”

Karen Scott, head of insight at Research in Finance, which conducted Duck Creek Technologies’ survey, added: “Many companies tend to focus too much on their product or service and forget to listen to what consumers are telling them or fail to even ask the questions.

“This results in declining revenue, profit and brand loyalty. The goal of any business is to create sustainable shareholder and customer value and that objective is easier to reach when we listen to consumers and most importantly create the changes required to meet their needs.”